Good news for domestically produced and assembled cars
The Government Office has just issued Notice No. 384/TB-VPCP of the Government Standing Committee at the meeting on receiving and explaining the opinions of Government members on the draft Decree regulating the registration fee for domestically produced and assembled automobiles. This meeting was chaired by Prime Minister Pham Minh Chinh.
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| Applying the registration fee policy is very good for the market in the current difficult economic context because it can stimulate people's demand. Photo: Can Dung |
After listening to the report of the Ministry of Finance, the speeches of the Deputy Prime Ministers and the delegates attending the meeting, the Government Standing Committee unanimously concluded to implement a 50% reduction in registration fees for domestically produced and assembled cars for a period of 3 months instead of a 6-month reduction as previously reported and requested for the Government's opinion.
The Government Standing Committee assigned the Ministry of Finance to receive consensus opinions at the meeting and explain the opinions of Government members, and at the same time complete the draft Decree and submit it to the Prime Minister for signing and promulgation before August 18.
The Government Office is assigned to urgently seek opinions from Government members on the decree. The Ministry of Industry and Trade shall preside over and coordinate with relevant ministries and branches to research and propose appropriate, feasible and effective policies to encourage the production and use of electric vehicles in Vietnam, and report to competent authorities in September 2024.
As soon as they received the above information, many people who had bought cars but were waiting for the registration fee reduction to register were overwhelmed because they could save tens of millions of dong in the near future.
Sharing on an auto forum, Mr. Vu Thai Bao, residing in Cau Giay District, Hanoi, said: "I bought a car from June 20, 2024 because at that time Honda was offering a 100% discount on registration fees for the CR-V SUV model, equivalent to 120 million VND. After nearly 2 months, I am still determined to wait. And in the coming days, when this policy is officially issued, I can register my car and get a further discount of about 60 million VND. In the current difficult economic times, saving nearly 200 million VND to buy a new car is very economical."
Although he has not bought a car as early as Mr. Thai Bao, many customers who want to own a car are also very excited. Because at the beginning of this month, when there was still no clear information about reducing registration fees for domestically assembled cars, some car manufacturers such as Toyota and Honda still launched incentive programs for domestically produced cars.
Therefore, car buyers in late August will still enjoy double incentives. To avoid registering a new car in the Ghost Month, customers can buy a car in August and register it in September. According to many experts, when the registration fee policy is officially applied, in September, car manufacturers will begin to cut down on incentive programs.
Meanwhile, many people who agreed to register their vehicles early to avoid the Ngau month expressed regret.
"I've been waiting for a whole month. I heard many people say that if it's not announced after July 31, there won't be a discount, so I registered my car the next day to avoid the ghost month. Now that there's news of a discount, I feel quite sad because I've already 'lost' nearly 100 million VND," said Mr. Ngo Long (Hai Ba Trung District, Hanoi).
Shorten the preferential period, is the policy maximizing its effectiveness?
In fact, since 2020, the Government has applied a policy of reducing 50% of registration fees for domestically produced and assembled cars three times. The first time was applied in the second half of 2020, the second time from December 2021 to May 2022, and the third time was in the second half of 2023.
Data shows that in the last 6 months of 2020, when the above policy was applied, the number of domestically produced and assembled cars registered for the first time was more than 200,000 vehicles, double that of the first 6 months of the year. During the second reduction in registration fees, car sales in the whole market reached a record of more than 400,000 vehicles in 2022.
Thus, in the recent reductions, the car sales of the Vietnamese market have made great leaps. However, the difference compared to previous times is that this time, the policy of reducing registration fees for domestically assembled cars only applies for 3 months, shortening by half.
The Department of Industry (Ministry of Industry and Trade) acknowledged that the experience of implementing this policy in the past has contributed to financial support for people and businesses through directly reducing costs when registering car ownership, thereby stimulating demand, encouraging people and businesses to buy cars to serve consumption and production and business needs. Thereby, the policy has supported manufacturers and distributors to consume the amount of cars in stock over the years.
The representative of the Department of Industry explained that, in the face of the sharp decline in the automobile market, automobile manufacturing and assembling enterprises have launched many incentive and support programs to encourage consumers to buy cars. However, if we only rely on the resources and individual stimulus solutions of each enterprise, it will not be enough to create a driving force to help the automobile market grow again in a stable and sustainable manner.
"Accordingly, the policy of reducing registration fees for car buyers is issued to strongly and effectively stimulate consumer demand, support businesses to maintain stable production and business, and ensure the maintenance of state budget revenue from the automobile production and business sector" - said a representative of the Department of Industry.
The Ministry of Industry and Trade supports solutions to remove difficulties and obstacles for businesses in general and domestic automobile manufacturing and assembling enterprises in particular. However, in the long term, the Government needs to continue to have policies to increase the localization rate, encourage investment in the automobile support industry to increase the production of domestic components. In particular, policies on special consumption tax will help reduce the cost of automobile production, promote a more vibrant and sustainable market than temporary policies.
Sharing with the Industry and Trade Newspaper, Associate Professor, Dr. Nguyen Thuong Lang, Senior Lecturer at the Institute of International Trade and Economics, National Economics University, said that applying the registration fee policy is very good for the market in the current difficult economic context because it can stimulate people's demand. Buying a new car is almost important for families, so when they intend to buy a car, they have prepared a certain amount of money. Therefore, no matter how many months the reduction is, customers will try to buy a car during that time.
“But when the number of cars sold increases sharply, will manufacturing enterprises be able to prepare production in time for the next 3 months to meet the supply?” Associate Professor, Dr. Nguyen Thuong Lang wondered.
Therefore, many other experts also commented that to maximize the effectiveness of reducing registration fees for assembled cars in just 3 months, manufacturing units need to have a production plan to ensure output for consumers. The balance of supply and demand must always be balanced. Because when demand exceeds supply, the situation of selling cars in the style of buying "beer with peanuts" can recur like in 2022. And then, stimulating the market will become counterproductive.
Source: https://congthuong.vn/nguoi-mua-vo-oa-khi-nghe-tin-giam-le-phi-truoc-ba-o-to-san-xuat-lap-rap-trong-nuoc-339668.html
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